t is mutual trust, even more than mutual interest that holds human association together’- H.L. Mencken’s words stand true to its meaning in today’s competitive market. For Financial Service Providers, these words have never sounded so significant than ever before. Trust is one of the key factors in maintaining a successful relationship with customers. However, this has been compromised drastically over the past years. While there is inflow and outflow of cash, what the customers mostly lack today is right advisory when it comes to managing finances, investments, portfolios or strategies. Deciding how to allocate the finances, while maintaining the right balance between debt and equity is an extremely strenuous job for both organizations/ treasuries as well as individuals. It is not always a smooth sailing ride when it comes to managing the finances. The need of the hour is not just understanding customer needs and building up customer relationships, but it also involves developing clear and practical action plans that ensure real and sustainable growth for the customers in the long run.
Drawing on rich industry experience, Kirandeep Kaur, a passionate Wealth Advisor & Financial Consultant was quick to seize this gap in the market as an opportunity and established KD Financial Services (KDFS) an integrated firm that specializes in offering a varied bouquet of customized financial services to its clients.
Equipped with 17 years of hands on experience in the financial service industry, and backed with a postgraduate degree in Treasury & Forex Management and Certified Treasury Manager from the Association of Certified Treasury Managers(ACTM), this alumni of IIM Calcutta, set out to be independent in 2015. Her core expertise lay in creating customized strategies which would accommodate clients' investment goals with respect to wealth creation, preservation, and liquidity.
“At KD Financial Services, we offer understanding, experience and most importantly the commitment to deliver pragmatic end-to-end solutions that truly work. Our services are patronized by corporate treasuries, High Networth Individuals and Financial Institutions apart from Armed Forces and Defence Institutions. Customized solutions offered for corporate treasuries to individual people solutions whether it's for the requirement of the funds or the investment of your funds, your entire financial services requirement will be taken care under one roof,” says Kirandeep Kaur, CEO and Founder, KD Financial Services.
"KD Financial Services offers understanding, experience and most importantly the commitment to deliver Pragmatic end-to-end solutions that truly work"
A TrailblazerConverting Challenges into Opportunities
As a one woman army, the journey was not going to be easy for her. She had accepted that. Right from the word go, Kirandeep knew she had to act like a Challenger brand and do some thing that would make her stand out.
‘You either give me money to invest or I will raise money for you’was her ask from her clients. Kirandeep’s first mandate was of raising a project loan of Rs 200 crore, in the same month when she had set out on her own. As luck would have it, she met the timeline and delivered successfully. Within a year the debt syndication book size touched Rs 1500 cr and by in three years, it was almost Rs 2500 crore. The entire syndication was done for various clients from different sectors and most of them were listed companies seeking funds (whether in the form of project loan, promoter funding, Loan against shares, issuance of NCD’s, Placement of Commercial papers and etc).
According to Ms.Kaur,“Apart from raising the funds, the structuring of the transaction is of utmost importance and advising the client the cheapest way in which the money can be raised.”
Recognized and respected for its proven track record of successful execution of mandates, KD Financial Services believes in creating and delivering exceptional value to its customers. One huge learning over several years in managing the huge treasuries corpus is that one needs to be extremely cautious while investing Money of retail clients or treasury clients. The majority of allocation in treasuries usually happens in debt markets and around 10-15% in equity. The debt products can be in the form of Corporate Fixed Deposits, bonds, NCDs, CP, ICD’s, Structure products, debt mutual funds like credit funds. One should be aware of the fact that debt is more riskier than equity if the issuing party defaults. One needs to be very careful while selecting the debt funds or while investing in debt products. The recent fiasco that we just saw of IL&FS, DHFL is the leading example and there are numerous other examples to give.
“While investing one should always visualize the worst scenario, does it match with risk and reward proposition, how much time frame do I give to this particular investment, what’s the pedigree of the company, the balance sheet size, the leverage position, cross holdings between companies and so on and so forth. While doing Debt Investments/Fixed Income, one should always be cautious about the end use of the money getting invested in, security clauses which states whether secured or unsecured or a negative lien and etc; one needs to be legally sound enough to understand these terms.
The simple procedure to follow is SLR(Safety, Liquidity & Returns) while managing your portfolio. If you see in case of equities, the BSE Sensex in 1979 was 100 and today in 2019 39,000 despite two wars, two prime
minister murders, three scandals, four rescission periods, different Governments, US Subprime, 9/11 attack, Lehman brothers, natural calamities and more, one should always invest in tranches and not lump sum. The investor should choose an SIP or STP options to gain the benefit of Rupee cost Averaging and Power of compounding. But I would urge the investors to go through a qualified and experienced advisor to get the financial plans made.”advises Ms. Kirandeep Kaur.
KD Financial Services offers various products for treasuries, HNI, and retail products. The offerings are customized for each and every client in a different way. Like for retail clients we offer goal based planning that could be from Retirement Planning to Children Wedding, Buying a House or Tax Saving. The entire investment is done post analysing the riskprofile of the client and post understanding the timeline prescribed by the client.
KD Financial services had successfully built up the debt syndication book size to Rs 2500 Cr Approx and managed an Aum of Rs 2000 Cr(Approx) for treasury management including debt and equity market within three years of Inception
The entire basket of financial products is available from corporate requirements to individual level from Group medical insurance to equipment financing to promoter financing, treasury management and for individual needs health insurance, critical insurance, pension plans and financial planning are available. The portfolio for individuals is designed after considering the entire financial needs of one’s life.
Marching Ahead with Customer-Centric Approach
Kirandeep hascome a long way since the establishment of KD Financial Services in 2015. Earlier, she had worked with companies like Birla Sunlife Asset Management Company, BOI AXA Investment Managers, Edelweiss Asset Management Ltd, Reliance Private Client (part of Reliance Capital) and Religare Private Wealth before venturing on her own. For her extensive work with Defence Forces, Kirandeep has been appreciated by the Chief of Navy in the form of Certificate of Appreciation for growing the funds and making safe investments.
KD Financial Services had successfully garnered an AUM of Rs 100 Crores including equity MF, PMS, Corporate Fixed Deposits, Bonds as well as debt MF in the first year itself, and this number after three years has crossed more than Rs 2000 Crores which includes Short Term deployment money as well.
Always a step ahead in thinking, Kirandeep took a bold step in introducing HIFAZAT medical assistance, post losing her father in 2018. By observing other caretakers in the hospital, she realized how hard and difficult it is for a patient’s family to fund treatment. HIFAZAT medical assistance offers a syndication platform with a tie-up with almost all the banks & NBFC’s of the country for people to convert their hospital bills into EMIs in the cheapest way possible. Further, it’s objective is to create awareness and promote the importance of Health and Critical Insurance in the country.
It is surprising to know as per the latest reports released by NSSO(National Sample Survey Organization)titled‘Key indicators of Social consumption in India : Health’, only 20 percent of the population had health insurance coverage and only 18 percent of the total population residing in urban areas and 14 percent of the total population residing in the rural area had health insurance coverage. There is no debate about why such coverage is not required by individuals. A total of 33 percent of the entire profits from the project HIFAZAT goes to TS Foundation Charitable Trust (which she has formed in the memory of her father Late Sardar Tirlochan Singh) and from there on to help the needy.
Today, as we speak, KD Financial Services has already tied up with more than 100 hospitals in Delhi/NCR. While executing this project and in various meetings with hospital fraternity, the firm has come across proposals to render financial services to the hospitals as well. With the inquiries from retail customer base has crossed more than 1000 and total company strength reaching more than 40 till date, KD Financial Services is riding a wave of success. In the years to come, the firm not only aspires to create and deliver quality but it is also looking forward to expanding its customer base across the country.
This May 2019, Kirandeep had the pleasure of listening to Warren Buffet and Charlie Munger in person at the Berkshire Hathway AGM at Omaha, USA. She definitely looks inspired and ready to conquer more fronts. When asked, if she is content with the way life has unfolded, Kirandeep smiles and replies, “I have miles to go before I sleep, miles to go before I sleep.”
AS ALBERT EINSTEIN FAMOUSLY STATED – ‘COMPOUND INTEREST IS THE EIGHTH WONDER OF THE WORLD; HE WHO UNDERSTANDS IT EARNS IT; HE WHO DOESN'T, PAYS IT.’AFTER YEARS OF LEARNING AND PRACTICING IN THE FINANCIAL INDUSTRY, WHEN IT COMES TO INVESTING, KIRANDEEP KAUR SUGGESTS –
• START EARLY
• DO NOT HESITATE TO CUT ON UNNECESSARY EXPENSES
• CREATE AN IDEAL INVESTMENT PORTFOLIO
• INVEST REGULARLY
• FOLLOW THE PRINCIPAL OF SLR
• INFLATION IS A #1 ENEMY
• SIP AND RUPEE COST AVERAGING ARE GREAT FRIENDS
• DON’T BLINDLY GIVE THE MONEY AWAY FOR INVESTMENTS
• KNOW WHERE YOUR MONEY IS GOING TO BE INVESTED. BEWARE OF PONZI SCHEMES
• HAVE A FINANCIAL ADVISOR WITH LEGAL KNOWLEDGE TO HELP YOU CARRY ON YOUR LEGACY FOR YOUR GENERATIONS TO COME!